A new arrival can come with unexpected costs

Bringing your baby home should be a time of joy, one that's not overshadowed by financial stress.

As the old saying goes, if you wait until you can afford kids you'll never have them. But you must be able to cover basic costs.

 

Getting ready

During the waiting period, much excitement and attention is focused on choosing names, the perfect pram, a nursery colour scheme, baby furniture and myriad clothes and fluffy toys. However too often the planning stops there and little thought is given to the family finances.

This is a mistake. Managing your money is even more crucial when you have the responsibility of a child on your hands. If you have an expensive month and need to live on bread and Marmite for a few days until pay day, it won't kill you. But a baby can't wait a few days for formula, fresh nappies or baby wipes.

 

Pre-baby budget

At least a year before you want to have a baby, start pretending that you're living on one wage. A lot of pregnancies aren't planned, but if you're one of the many couples caught by surprise, remember it's not too late - you still have nine months to sort out your finances.

 

What it really costs

Sit down with your partner and list your income and all your expenses. Be totally honest - can one income cover your outgoings? If not, work out where you can cut back. Don't leave this until after your baby has arrived.

Once you've made your list, try to live on one wage for a year before you have a baby. You'll be ready to tackle parenthood on a single wage and will have saved a nice little nest egg. Your savings could also be used to cover your baby set-up costs, such as the purchase of a cot, pram and clothes.

 

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